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Which of the following best describes an 'English mortgage' as defined under Section 58(e) of the…

Under section 58(e) of the Transfer of Property Act, 1882, an English mortgage includes a promise to repay the mortgage money on a fixed date and an absolute transfer…

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Which of the following best describes an 'English mortgage' as defined under Section 58(e) of the Transfer of Property Act, 1882?

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Answer and explanation

Correct answer B

Under section 58(e) of the Transfer of Property Act, 1882, an English mortgage includes a promise to repay the mortgage money on a fixed date and an absolute transfer subject to retransfer on repayment as agreed. Section 58(f) concerns delivery of title deeds with the intent to create security in a town specified in or notified under that provision. Section 58(d) concerns delivery of possession or an obligation to deliver it, with authority to retain possession and apply the rents and profits to interest, principal or both.

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Option A

Incorrect. A permanent transfer of ownership for a price without any proviso for re-transfer is an outright sale under Section 54 of the Transfer of Property Act, 1882, not an English mortgage.

Option B

Correct. Under Section 58(e) of the Transfer of Property Act, 1882, an English mortgage is a transaction where the mortgagor binds himself to repay the mortgage-money on a certain date and transfers the mortgaged property absolutely to the mortgagee, subject to a proviso that the mortgagee will re-transfer it to the mortgagor upon payment of the mortgage-money as agreed.

Option C

Delivery of title deeds with intent to create security in a place specified or notified under section 58(f) describes a mortgage by deposit of title deeds.

Option D

A usufructuary mortgage under section 58(d) involves delivery of possession or an obligation to deliver it, with authority to retain possession and apply rents and profits as the provision specifies.

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